Examining the 4 day work week

Abstract

Introduction

In today’s fast-paced world, where hustle culture is still widely established, the idea of a 4-day work week (32 hours for 100% pay and benefits) has been gaining popularity in the last few years. While first publishings on the topic can be easily found as far back as the 1970s, the concept has experienced a kind of Renaissance with the recent technological advances and rise of AI. It’s got people talking about whether we could really pull off such a radical shift in our work schedules. And amidst heated discussions, there are a lot of questions swirling around: Will it make us happier? Healthier? More productive? Or will it just mess with our paychecks and the overall economy?

This article aims to give an insight into the current state of research and use cases to answer the question: To what extent do existing data and case studies support the potential benefits and challenges of transitioning to a 4-day work week?
Why does this matter? In an era characterised by increasing demands on individuals and organisations alike, the prospect of a shorter work week holds implications for productivity, job satisfaction, and overall quality of life. For businesses, it raises questions about operational feasibility, cost implications, and competitive advantage. Meanwhile, policymakers are grappling with the broader societal impacts and implications for labour market dynamics.

Amidst these considerations, empirical evidence plays a crucial role in informing the discourse. By analysing existing research and case studies, this article aims to provide a nuanced understanding of the potential outcomes associated with transitioning to a 4-day work week. Whether you’re an academic delving into emerging trends in economic policy or a business leader seeking insights into workforce management, this article offers valuable insights into a topic that continues to shape the future of work.

Method

Using both AI-powered tools and traditional research methods, we aim to gather empirical evidence from a variety of sources, including academic literature, industry reports, and case studies. Our data collection process will involve retrieving research papers, articles, and company use cases that provide insights into the potential benefits and challenges of implementing a 4-day work week. We will prioritise studies that offer empirical evidence, quantitative data, and qualitative analysis to support our research objectives.

Research Summary

This chapter examines the currently existing research as well as use cases on Work-Life Balance, Productivity Metrics, Operational Impact, Financial Aspects and Environmental Impact.

Work-Life Balance

Within the conversation of whether or not to implement a 4-day work week, the topic of work-life balance often appears to be the main driver for change. In qualitative research with employees and managers of a New Zealand-based company, Delaney (2018) found that participants reported they had spent more time with their families, got more home projects done and had more time to think and learn when shifting to the new working model. Similarly, a small sample of municipality workers in Canada ran a 4-day work week trial, and the qualitative research described overall positive results, including generally improved work-life balance and increased job satisfaction (Spicer & Lyons, 2022). In a later study on a management-led trial, Delaney & Casey (2022) found that during the transition, the management increased performance measurement, monitoring and productivity pressures on their employees.

A trial with Metro Manila in the Philippines found a decrease in job stress with an increase in productivity directly linked to that, but no significant relationship between reduced work time and work-life balance. The Henley Business School (2021) found that of the companies participating in their research, 62% had fewer ill employees following the implementation of a 4-day work week. Further, 70% of the participating employees reported that they were less stressed and 78% that they were happier working in the new model.

In an assessment of 12 companies in Ireland, Kelly et al. (2022) found that of the participating companies, sick days fell in four and increased in three. Altogether, the trial was especially successful for women, with a significant improvement in life satisfaction, gains in sleep time and more security in their employment. Employees reported using their days off for hobbies, household work and personal grooming, with the amount of time spent on hobbies increasing on average by 36 minutes a week and more time spent exercising. The authors found an overall significant increase across multiple well-being metrics, including positive affect, work-family and work-life balance, and several domains of life satisfaction. Average sleep time increased from 7.02 hours to 7.72 hours, and sleep deprivation (less than 7 hours of sleep per night) decreased from 34% to 9%. Finally, the authors reported that stress, burnout, fatigue and work-family conflict significantly declined.

In 2022, the UK hosted one of the largest 4-day work week pilot trials, encompassing 61 companies and 2,900 employees. These organisations transitioned to a condensed work schedule, operating on a 4-day work week for a duration of six months. 82% of the surveyed companies reported positive impacts on well-being, with 50% experiencing positive effects on reducing staff turnover (Pignon et al., 2024). Reporting on the same experiment, Andrews & Danise (2023) further describe that 57% fewer staff left during the experiment and sick days, as well as other absences, declined. Another impact of the trials was that men spent more time with their children and 27% more time on child-care activities (Cooban, 2023). Adding to the initial results of the trial, Pignon et al. (2024) examined the long-term impact a year after the six months ended. They found job satisfaction to be slightly lower when compared to the endpoint of the pilot, but still significantly higher than prior to the trial. They further report that the notion of a ‘honeymoon phase’, meaning that the effects of the trial might fade with time, has been disproven, with both qualitative and quantitative data showing strong improvements in work-life balance and general life satisfaction a year following the trial, with the addition of reductions in burnout.

Pignon et al. (2024) additionally held an employee survey a year after the trial ended and found that 96% of all 294 employees reported that the 4-day work week had an overall positive impact on their personal lives, with a rate of 97% when regarding only women and non-binary people and even 100% for people of colour and people who indicated being disabled or living with a long-term health condition. Pignon et al. (2024) further found that 41% of respondents reported lower stress levels and 9% on improved mental health. Regarding time spent with family and friends, 13% of participants reported an improvement, as well as a higher quality of these relationships and 3% of the participants reported that they had taken up additional outside-work activities.

When reviewing the recent studies and cases, a pattern of increased work-life balance can be observed. The extent of these changes varies between the sources, but shows an overall positive trend.

Productivity Metrics

Productivity has been the focus of the discussion around the four-day work week. Supporters, as well as adversaries of this model, emphasise that its implementation will highly influence productivity. Therefore, it is crucial to cross-examine qualitative research already conducted on companies that have adopted this innovative model to determine its impact on productivity.

In 2023, Timothy Campbell conducted an extensive chronological and systematic review of the 4-day work week and its effects on productivity. The results of his review suggest that there is a positive correlation between implementing a 4-day work week and productivity. These findings include overall positive productivity results; some companies reported a 27% increase in productivity among employees. After a period of 12 weeks within the trial of a 4-day work week, some companies reported a general increase of productivity to 30%, including as well as other metrics such as general well-being and job fulfilment. Furthermore, it is reported based on this study that absenteeism was reduced to almost zero days (Campbell, 2023).

In the aforementioned UK trial on the four-day work week in 2022, conducted by Autonomy, reported that 46% of the participants described positive changes in productivity, leading to maintained or increased overall performance (Pignon et al., 2024). Additionally, almost 90% of the companies that took part in the 2022 trial have confirmed that the 4-day work week is still in place by 2024 (Pignon et al., 2024). Increased productivity was also identified in larger trials in Ireland; Reporting an average rating of 8.2/10, where the overall company performance was positively affected and the employee productivity at a positive 7.6 out of 10 (Kelly et al., 2022).

Additional researchers claim similar results in their studies, showcasing how this new working model can positively impact employee performance as a result of different factors like employee happiness (Chakraborty, 2022). A further study done by the Henley Business School in the UK, interviewing over 2000 participants, including business leaders and employers, demonstrated that a 4-day work week leads to a 63% increase in quality work and significantly boosts productivity by 64% (Henley Business School, 2021). These findings further highlight the interconnection between employee well-being and productivity in the context of a 4-day work week.

In Japan, Microsoft has undertaken empirical investigations into the implementation of the model, and their findings indicate a significant increase in productivity, which is quantified at 40% (Chappell, 2019). A clear link exists between implementing a 4-day work week and improved employee engagement and satisfaction, directly influencing positive levels of morale, job satisfaction, and increased profits (Campbell, 2023). Some studies discuss and analyse the broader implications of the 4-day work week on innovating how work is prioritised and completed, valuing working smarter rather than longer. Such a demeanour has been proven in a study by Dr Helen Delaney, which shows that it positively influences creativity, collaboration, and prioritisation (Delaney, 2018). Nevertheless, in some cases, the model may have limitations depending on the industry, age, job roles, and company policies to support the transition to a shorter work week.

Scholarly examinations and empirical evidence into companies that encountered challenges in maintaining adherence to the shorter work week underscore the critical significance of effective workload allocation and highlight the imperative for cultivating innovative strategies aimed at optimising productivity through working smarter. By forcing the workload of 5 days into 4 days, employers may inadvertently overload employees and undermine the intended benefits of a 4-day work week (Delaney, 2018).

Several companies have reported unchanged levels of productivity after their 4-day work week trials, indicating that the impact of a 4-day work week on productivity may vary depending on the specific circumstances and dynamics of each organisation (Calvasina & Boxx, 1975).

Considering each company’s unique characteristics and needs is important before implementing a 4-day work week. This includes assessing the workload distribution, job roles, industry requirements, and the policies in place to support employees during the transition. Overall, a direct correlation exists between implementing a 4-day work week and positive outcomes such as increased productivity, employee engagement, and job satisfaction, which can contribute to a more efficient and harmonious work environment. This is a clear indication that a 4-day work week can still provide benefits such as improved work-life balance and reduced carbon emissions while keeping productivity at a consistent level.

Operational Impact

Assessing the Operational Impact delves into how the transition to a 4-day work week affects the day-to-day functioning of an organisation and its ability to meet strategic objectives. This chapter will examine the long-term operational implications of a 4-day work week with the support of Autonomy’s findings. Autonomy is an independent research organisation focused on tackling issues such as climate change, work’s future, and economic planning. They have conducted a follow-up research case study on the UK’s 4-day work week pilot project one year on.

One of the key findings among long-term effects was the positive impact it had on managers of the participating companies in the trial. The number of managers who noticed a positive impact in their work has increased to 91% since the commencement of the pilot project, with 87% of employees reporting the same. Overall, the work intensity has decreased and is even lower than it was before the pilot. Additionally, there are clear indications of increased productivity as well as stable maintenance of operations (Pignon et al., 2024). The vast majority of project managers, 55%, evaluated and reported “very positive” effects on the overall impact on the organisation, while 45% reported a “positive” impact. None of the project managers fell under the categories of “neutral”, “negative”, “very negative”, or “uncertain”, suggesting the importance of a shorter working week for operational excellence. Operational challenges such as employee turnover saw a positive increase of 50%, and 32% of them reported a noticeable improvement in recruitment. Among mentally and physically healthier employees, there is also a noticeable reduction in employee burnout, and 87% of staff members reported a positive impact on their work (Pignon et al., 2024).

Both managers and staff members surveyed in the follow-up study a year after the pilot project in the UK suggested that a shorter week not only had positive effects on their well-being but also had significant operational advantages, including more productivity, less work burnout and improved retention rates.

Financial Aspects

Exploring Financial Aspects uncovers the economic implications of adopting a 4-day work week and its influence on the organisation’s financial performance. This chapter will look into the financial effects of a shorter work week largely based on the UK 4-day work week pilot project.

Adding to the previous operational implications of a shorter work week, there are clear indications that there were no overall negative financial consequences but only clear benefits to staff morale and organisation finances (Pignon et al., 2024).  Reports based on the pilot project in the UK indicated, on average, a company revenue increase of 1.4% during the first six weeks, which was also 35% higher than in a similar period in the year before. In addition, sick days and other absences, including employees resigning, declined by 57% (Andrews & Danise, 2023).

A white paper published by the Henley Business School of the University of Reading showcased that 51% of business owners could save costs as a result of a 4-day work week (Henley Business School, 2021). Such results are not unique; a research study by the Management Review Quarterly points out as well the financial benefits of a shorter week, where, in some instances, companies reported to have increased their profits by up to 30% in only three months (Campbell, 2023).

Comprehensively, most case studies on the 4-day work week indicate an increase in productivity and finances. Acknowledging that such a characterisation does not uniformly apply to all enterprises is imperative. It is essential to recognise that not all models and policies of the 4-day work week could be universally applied across diverse corporate entities and their respective business models. Companies that fail to report financial benefits from the adoption of a 4-day work week must undertake measures to rectify their policies, ensuring alignment with the demands and preferences of their customer or client base, thereby fostering the development of a sustainable working model for their employees. Furthermore, companies need to undertake a comprehensive assessment to identify bottlenecks hindering their operations, facilitating an environment aligned to employee well-being and operational efficiency first, ultimately fostering a prosperous business landscape for employees and customers.

Environmental Impact

Adding to the discussion, the question of how a 4-day work week impacts the climate has been raised. According to Muller & King (2023), this largely depends on how employees use the extra day off; according to the authors, the concern of increased leisure travel, especially by plane, is not supported by data, which instead has shown an increase in time spent on hobbies, housework and self-care as well as a general shift toward more sustainable lifestyles. In a research based in Ireland, pro-environmental behaviour has been observed, specifically in activities (recycling, eco-friendly purchases, walking and cycling over driving), education (on the environment as well as encouraging others to educate themselves) and volunteering (Kelly et al., 2022). Additionally, within companies that adopted a 4-day work week, employees had 66% fewer car journeys to make (Henley Business School, 2021).

Ashford & Kallis (2014) argue that productivity gains, due to the latest technological advancements should be directed towards free time instead of further accumulation, which in turn could positively impact the environment. They further describe that any government policies regarding less working time with the same wages should be accompanied by policies that shift incentives towards more environmentally friendly consumption. In a study conducted in 2013 by David Rosnick, the author reports a positive impact of fewer working hours on CO2 emissions of US households (note that this was not specifically tested on a 4-day work week). Lastly, an analysis by Mompelat (2021) indicates that the implementation of a 4-day work week without a decrease in wages could decrease the UK’s carbon footprint by 127 million tonnes per year by 2025, meaning a reduction of 21.3%. These numbers are equivalent to taking 27 million cars off the road, which would be all of the UK’s private car fleet.

Conclusion

Based on the research, it is clear that a 4-day work week can improve employee well-being and work-life balance, boost productivity and operations, increase revenue, and support the climate. The pilot project in the UK has shown promising results to support the claim that a shorter work week can have positive impacts on both individuals and organisations. By providing employees with more time for personal activities and rest, corporations can create a healthier and more sustainable working model. As indicated previously, productivity is not compromised with a 4-day work week. In fact, it has even increased in the majority of case studies. The revenue of businesses implementing a 4-day work week has been shown to increase due to various factors such as improved employee morale, reduced absenteeism, and increased employee engagement. Additionally, a 4-day work week can contribute to reducing carbon emissions and supporting environmental sustainability. This research does not aim to analyse the best industries to implement a 4-day work week but rather highlights the unhidden potential and advantages of a shorter work week.

Throughout the research, it has been noticeable that a small percentage of companies involved in the pilot project have unsuccessfully implemented the 4-day work week. The challenges that such companies faced included difficulties in adjusting schedules, workload distribution, and managing client/ customer expectations. The conclusion this research draws on the reasons such companies have failed in the pilot phase is the unrealistic expectation of achieving more with less time without investing proper time or resources in automations, processes or productivity improvements. Additionally, aspects such as effective communication with employees and correct expectation settings with clients or customers are of crucial nature when implementing this new working model. Ultimately, it is important for organisations to carefully consider which model of the 4-day work week aligns the best with the needs of their employees and customers.

Overall, the research suggests that implementing a 4-day work week can have numerous benefits for both employees and organisations. The results of this research article highlight the importance of redefining the traditional working model to prioritise a sustainable and healthier society that values human well-being and environmental stewardship.

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